TPG to acquire The Warranty Group from Onex Corporation

TPG, a global private investment firm, has signed a definitive agreement to acquire The Warranty Group from Onex Corporation, for an enterprise value of approximately $1.5bn.

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Under the terms of the agreement, TPG will acquire The Warranty Group and its operating units including Virginia Surety Company, London General Insurance Company, and Resource Automotive. The transaction is expected to close in the third quarter of 2014, and is subject to customary closing conditions and regulatory approvals.

"We are excited to partner with TPG, which will provide our company with the global resources and deep financial industry expertise needed to expand both internationally and domestically," said Thomas W. Warsop, III, President and Chief Executive Officer of The Warranty Group. "We look forward to working with the TPG team to identify additional growth opportunities, while providing our clients and their customers with an even more robust menu of solutions."

"As the worldwide leader in full service underwriting and administration of extended warranties, and with its unique business model, The Warranty Group is well positioned to take advantage of current and future market trends," said Eric Leathers, Managing Director at TPG. "Tom and his team have done a great job building the business, and we believe with our additional capital, operational expertise and global relationships, we can accelerate the company’s growth."